small set of simple bivariate closed-loop time-series models for the prediction of price inflation and of long- and short …

Potential links between inflation, (t), and unemployment, UE(t), in Germany have been examined. There exists a … negative relation between inflation and unemployment with the latter leading the former by one year: UE(t-1) = 1.50(t) + 0 ….116. Effectively, growing unemployment has resulted in decreasing inflation since 1971, i.e. for the period where GDP deflator …